an audit of microcap stock

Among the most important arsenals of an investor is information. Before investing his hard-earned cash on a company, an investor must know everything relevant information about it. However, some companies only have limited information available about them, which makes them more vulnerable to schemes and fraud. One of these is microcap stock companies. If you’re planning to invest in these stocks, here are a few things you should know.

Microcap stocks pertain to the different companies having a value that is less than or equal to $100 million dollars. Most of the US stocks are included in this group, but only a tiny portion of them make up the entire stock market rate. In effect, these stocks are only traded in meager amounts and low volumes.

Microcap stocks are typically traded in Over The Counter markets and there are two ways of doing this. First, the stocks are quoted in the OTC Bulletin Board, which is an e-quotation system that disseminates real-time sales, quotes, and volume information. The second method is through the Pink Sheets, which is essentially a list of price quotations for companies traded in the OTC market. You won’t usually find them in NASDAQ and AIMEX because these are major exchanges that require a company to have a particular net amount before being traded. You would know if a company is already established if it belongs in either of the two major exchanges.

they differ from other stocks because there isn’t enough information about them. Big investors are usually not interested about these medium scale companies due to their low value. And since investors are not interested with these, stock analysts seldom research and write about them. So, unlike the major companies, these trading capacities are very limited. Also, the limited information about the stocks make them more prone to fraud schemes.

As mentioned earlier, the shares of these entities do not have the minimum prerequisites required in order to trade in major exchanges. They are limited to Pink Sheets and OTC Bulletin Board, because these two systems don’t have any prerequisites that companies have to comply to. Meanwhile, AIMEX and NASDAQ require companies to have a specific amount of assets and a particular number of shareholders.

Aside from that, going into this level of trading can be a risky venture. The stocks have no available track record due to their being new in the stock trading business. Also, most products of these companies are still undergoing testing, and some still need to be developed.

Among all the stocks available, these could be considered among the riskiest to trade, however most lucrative if done right. Why? Their prices are unstable because they trade in small volumes and very low values. There would be a major impact on stock prices if you trade them with other kinds of stocks. You should carefully think about these risks before you decided to trade this criteria of shares.

It would benefit you to study and read up more on microcap stocks since this article just covers the basics. It is best to be well-informed, so that you can make wise moves and decisions in the end.

The essayist who wrote this article has came across an advisor by the name of Josh Yudell. I believe Josh Yudell to be widely considered an expert in the fields of investor relations, SEC compliance, corporate finance and capital structure.

Do you track your ATM fees that you pay? Many of the transactions conducted via ATM have a charge. There are two basic types of ATM fees that you may be paying.

The first type is a simple surcharge fee that is charged by the owner of the ATM. Often these run as high as $3.00 per transaction. You may also experience fees that are collected by the financial institution itself.

There can be another type of fee, though. You can have an ATM fee that is called a transaction fee. This is a sort of penalty levied against bank clients who don’t use their own bank’s ATMs.

Taken one at a time, the fees don’t seem like any big deal – $3.00 here, $3.00 there. But if you check over time and add up how many of these fees you have paid, you may be surprised. Why not take some simple actions to cut down the ATM fees you pay every month?

The first thing to do is to see if your bank charges a fee if you use the ATM of a different bank. Not all banks do. If you open an account with a bank that doesn’t assess such fees, you may pay as much as 50% less in surcharges.

Other banks will reimburse you if you pay a surcharge fee. That can also add up and is a nice service. These banks will return money to you if you are using an ATM in a remote area that charges you an owner’s fee.

Another option is to check into getting a debit card. This is a credit card that is accepted at stores, but is linked to your checking account and takes the funds directly out of your account. It eliminates the need to go pull cash out from an ATM before you go shopping.

Finally, try to be accurate when you assess your cash needs. How much will you need to cover you for the next week? It’s better to take out enough so that you don’t have to go back to the ATM yet again, instead of taking out an unrealistically small amount and then having to keep going back. Fewer transactions mean fewer fees.

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Tips About How To Learn Forex Trading

Many people now engage in the practice of forex trading so that you can earn some extra money or even to produce a full-time living. If this sounds like something you are searching for, you will certainly need to spend time in learning how to trade forex before you actually step into the deep end. As such, here are a few actions to be able to learn forex trading.

Thankfully, the forex website offers a demo account where people can sign up and learn the basics of trading without having to sacrifice or risk any of their actual money. It is a fantastic option for anyone to take advantage of, and will help you to take as much time as you like in learning the different intricacies of trading forex without having to worry about the risk of financial loss.

You should also learn up to you can about trading currency. There are many excellent sites that will help you tap into numerous pieces of advice and thoughts about how to trade (or hot stocks by the way) safely and effectively.

It is also smart to look through different forex forums which were setup by traders. These will allow you to get some inside advice from those who actually engage in this sort of trade, and you ought to therefore be able to find out about any pitfalls to avoid, especially those that might engulf newcomers.

Once you have spent time in your learning (see forex ambush review for more tips), then it might be time to actually put down some real money and check it out for real.

It’s always best to use some disposable income that you would otherwise spend elsewhere so that you can limit any losses that you have. In many ways, the best way to learn is simply to have a go, and so once you’ve done the basics, you should throw yourself in at the deep end.

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The Small Managed Futures Account Conundrum

I not too long ago scanned a Commodity Trading Advisor Data base to look at minimum account sizes for managed futures accounts. I observed minimum account sizes varying from $25,000 to $5,000,000. I also noticed the typical CTA trading a small minimum account size has concentrated portfolios, high-margin requirements, little money under management, a short track record, high volatility, just traded options or was presenting a pooled investment. Diversified trend followers offering individually managed accounts looked to have minimums that were usually at least $1 Million.

Small managed futures accounts in the futures markets (less than $250,000) face considerable challenges not experienced by large accounts. Considering that most commodity futures contracts have face values in the tens or hundreds of thousands of dollars, it is easy to surmise that these contracts are for large accounts. But, low-margin requirements have long attracted smaller speculators and are the proverbial “rope to hang oneself with”.

Let’s analyze why large managed futures accounts may have it easier than small accounts. First, large managed futures accounts can afford to trade almost any opportunity at any time. There are over 100 tradable futures markets worldwide, and should buy or sell prospects simultaneously exist in any or all of them, a large managed futures account can easily afford the margin and exposure. It is said that when it comes to trading that “diversification is the only free lunch” and large managed futures accounts can afford to diversify with impunity. This is in marked contrast to the small managed futures account where prudence dictates only having risk and exposure in a few markets simultaneously.

A large managed futures account is not restricted from trading contracts whose volatility is fairly high. For example, a London copper trade with a stop loss $14,000 away represents a risk of 1.4% in a million dollar managed account, but in a $100,000 managed account, this same trade would represent a risk of a whopping 14%! Any sensible trader would avoid that trade in such a small account; however, having to skip these opportunities is yet another penalty paid by the small managed futures account.

What’s more, the large managed futures account can use one of the easiest forms of risk control available, contract scaling. For example, let’s assume a large account is long 50 gold contracts during a large bull market run and wishes to cut his open trade profit exposure. He can simply scale off as many contracts as he needs to lock in profit, while maintaining his profitable position, but what can the small managed futures account do for scaling out if he only has on one contract in the first place!? Once again, the small managed futures account does not enjoy the flexibility to control risk in the same fashion as the large managed futures account.

Now, for all the negativity I’ve just outlined above I believe the smaller account has advantages over large ones. Small accounts are able to trade markets that would be far too illiquid for large accounts. Most institutional size funds are nearly confined to the trading of financial and energy instruments. They end up missing out on trading opportunities in the traditional physical commodity markets. Specifically commodities like Grains, Foods, and Fibers and the like. This creates a lack of diversification and an over reliance on those few sectors. The ironic thing is that many small accounts end up with the same problem because they have chosen to deal with their small account problem by only trading a few (or one) market! They end up missing out on the sharpest edge they have on the “big boys”.

It is for those smaller traders who want the rewards of true global diversification, with an individually managed (not pooled) account, that we formed Hoffman Asset Management. HAMI is chiselling out a special niche by featuring a managed account program that monitors and trades over 70 diversified commodity markets, while trading accounts as small as $30,000. The program’s design tries keeping draw downs and volatility in line with what might be available in a large broadly diversified account. This mixture of trading many markets within a small account while keeping volatility in check is genuinely unique. It fills what we think is a huge void in traditional managed account choices.

What we do is proprietary; however, the fundamental philosophy uses a form of relativity. HAMI screens a large universe of tradable commodities for possibilities, yet, is extremely selective in those trades that it will take. For roughly every 10 trading opportunities identified by HAMI’s combination of trading systems, it takes only 1. HAMI’s formulas are not only taking into account the market’s direction and movement potential, but also how that potential ranks on a risk-adjusted basis. The idea is that an opportunity can only be assessed relative to what else is obtainable. For example, how do traders know if a 5% return is satisfactory or not? The answer should be “it depends on what else is obtainable”. In other words, the 5% return is only acceptable or not relative to different options. Only a small percentage of all the markets tracked by HAMI’s strategy get identified as the best, and then it looks at only those markets should one of its numerous trading systems produce a signal.

The portfolio selection process is dynamic and rebalanced every day. From day to day the basket of markets that we will look at trading changes. We feel this keeps HAMI’s trades limited to only those markets with the greatest risk adjusted potential. This allows us to evaluate a large portfolio while still keeping trades and margin requirements low.

Monitoring a large portfolio is crucial because if traders limit themselves to a predetermined small portfolio, how do they know that those markets will be the best markets? (Hindsight bias portfolio selection is a form of curve fitting and is a leading downfall of many traders). If an exceptional opportunity develops in a market outside a predetermined portfolio, a trader should want to take advantage of it. By trading with Hoffman Asset Management?s trading systems, traders do not arbitrarily rule out any market that may perform well, and they have reduced the likelihood that a portfolio is merely the product of past performance (curve fit) considerations. The key is researched logic that can do this automatically, and that is what Hoffman Asset Management?s trading strategy uses.

This article about a managed futures was written by Commodity Trading Advisor Dean Hoffman of Hoffman Asset Management Inc. Commodity trading carries risks and is not for everyone. Past performance is not indicative of future performance.

Simple Tips To Maximize Your Forex Profits

Did you know which you can discover a industry that is open 24 hours a day? It is called the Forex market and when you go there, you will not find any services, commodities and goods to purchase either. The Forex market is where various kinds of currencies are traded. In each and every trade, two currencies are involved. For instance, you are able to market your Canadian dollars for Euros; or you can pay Japanese Yen for US dollars. Forex trading rates or exchange rates can change unexpectedly. You’ll need to monitor these exchange rates to be able to ascertain if the price of a specific currency went up or down.

Modifications inside the Foreign exchange market generally occur rapidly and so it is important for traders to keep track of the developments in the marketplace. Political and economic events can influence the modifications within the Forex trading industry. If you want to discover whether you are gaining or losing in Forex trading buying and selling, this article will help get you pointed in the right direction.

The Forex trading investment is greatly affected by the exchange rate and to be able to understand the relationship between the two, you should also be familiar with Forex trading quotes. Like the currency pairs, Foreign exchange quotes could be found in pairs too. Here is a extremely good illustration:

1.Suppose the currency pair is USD (US dollar) and CAD (Canadian dollar)

The Forex trading quote for this pair is USD/CAD=170.50; this is interpreted as ‘every one US dollar is equivalent to 170.50 CAD. The currency found at the left side is known as the base currency and it’s often equivalent to one. The currency identified at the right side is referred to as counter currency. The stronger currency is always the base currency and in this case, the USD. The Forex quote’s central currency is USD and so it is possible to discover it in most Foreign exchange quotes.

How can you determine if you are earning profits or not? You can use an additional example.

2.This time use EUR to USD. Assuming that the Foreign exchange rate is one.0857; in this example, the USD may be the weaker currency. If you bought 1,000 Euros, you’ll need to pay $1,085.70. Right after a year, the Forex trading rate was at 1.2083 and this indicates that the Euro’s value elevated. Should you decide to market the 1,000 Euros now, you may get $1,208.30; now, in this transaction, you gained $122.60. What if the Foreign exchange rate a year after was 1.0576? This indicates that the Euro’s value weakened. Should you still determine to sell the 1,000 Euros, you may only receive $1,057.60 which indicates that you simply lost $28.10; did you get it?

Forex trading trading involves lots of dangers just like mutual funds and stocks. The fluctuations within the exchange marketplace are responsible for such dangers. Low level risks like government bonds in the long-term can give returns but are quite low. If you want to get greater returns, you may need to invest in Forex trading but you need to face higher level dangers.

You must set financial goals for the short term, as well as for the long term. By doing so, it will probably be much simpler to balance the hazards involved and the security. You will be able to conduct your trades with ease and comfort. Make use of all the obtainable Forex trading buying and selling tools so that you simply can to make wise and profitable trades. After reading this article, you can already calculate if you’re gaining profits or not.

Learn more forex trading strategies by stopping by the author’s site where you can find several forex trading tutorials and what it can do for you.

Forex trading for a newbie might be a possible maze with main pitfalls. It has humongous knowledge to handle, complicated analyses to be achieved and numerous decision factors to wade through. All this could deter a novice from venturing into the forex market. However, there is so much of revenue ready to be made in the foreign exchange market. How can earnings be achieved? How can this forex trading complexity be tackled successfully?

Automated forex software is the answer to the prayers of forex traders. Best forex software program is out there to carry the load of complexity surrounding trade selections in the foreign exchange market. Additionally recognized popularly as foreign exchange robots, these software are a results of technological improvements and forex trading wizardry. These robots include minimal or no guide intervention.

All of the user must do with the very best forex software review is to down load it, create a trading account and unleash the software into the forex software market and just sit back and watch the profits pouring in! It also needs to be able to commerce 24 hours a day, 5 days per week, when the foreign exchange market is active.

Foreign exchange robots are meant not only for novices. The perfect forex software is used even by skilled and highly profitable traders. They make the foreign currency trading course of simple, enjoyable and quick. And of course, most worthwhile too. They’ve one of the best inbuilt algorithm or algorithms to assist make winning commerce decisions.

The algorithms are written in such a manner that every one the complexity of analyses considering several parameters, are dealt with logically and precisely. Not only that, all of the unlikely trades which can be potential profit makers should be fished out and utilized. So, commerce selections are at all times assured of being sound selections which can be highly more likely to carry house profits. The perfect forex software Review is very fast. Because of their pace, a variety of time is saved from the decision making process which might in turn be channeled into the precise forex trading. Small commerce accounts or big commerce accounts, there are earnings to be made in the forex market using it.

John adams is professional forex trader and writer on the forex market. He also a very experienced in using forex technology Click here on Forex Software Reviews, He has listed the Best forex robots , Click Here To Find the Secrets of Forex Software and Claim your $500 bonus

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